Engie CEO Confirms Plans to Hold onto LNG Business
Correcting earlier reports, Isabelle Kocher, CEO of Engie, says the company is not considering the sale of its liquefied natural gas (LNG) business, but did confirm Engie has plans to exit burning coal and oil production, Reuters reports.
As Ship & Bunker previously reported, the company’s CGT Union Monday said that Engie was examining its LNG business, which could lead to a reorganisation and possible sale.
The news came following an announcement earlier this month that Engie, along with NYK Line and Mitsubishi Corporation (Mitsubishi), had launched Gas4Sea – a new brand for global marketing of LNG as a marine fuel.
“No, gas really is part of our activities… Shipping gas to countries which today are relying on coal and which want to switch to gas, that is at the heart of our business,” Kocher confirmed Wednesday.
We are working on our supply chain because prices have fallen and therefore earnings are under pressure,” she added, noting that the company is working to adjust to lower prices within the market.
Kocher also confirmed that the company is not planning large-scale job cuts as it makes its transition to renewables, grids, and energy services.
As Ship & Bunker has reported, Gas4Sea is set to begin operations in the fourth quarter of 2016, and will use a purpose-built 5,000 cubic metre (cbm) capacity LNG bunkering vessel.